Guingona: Economic figures ‘doctored’

Senate Minority Leader Teofisto Guingona accused the National Economic and Development Authority (NEDA) yesterday of "doctoring" the country’s latest growth figures to make it appear the economy was growing far stronger than expected.

In a press statement, Guingona said the 5.7 percent growth in the gross national product (GNP) for the third quarter was not an accurate reflection of the country’s true economic performance, citing the inconsistencies with the reference figures.

"NEDA has been issuing conflicting reports on the quarterly growth rates with respect to the GNP and GDP (gross domestic product). This has given rise to well founded speculation that they have been tinkering with growth rates every quarter," the senator said.

He said it was ironic that a majority of Filipinos are getting poorer "in the face of rosy figures reported by the government."

The GDP, which measures the aggregate of food and services produced minus income remitted by overseas Filipino workers (OFWs) and firms abroad, grew by 4.8 percent for the third quarter year on year, far exceeding market expectations of well under 4.0 percent.

Guingona noted that for the first quarter of l999, NEDA reported a GNP growth of 2.0 percent. But by November of the same year, the figure was changed to 2.10 percent. The same reference figure, he pointed out, was reduced to 1.5 percent in the August report.

He also cited conflicting reports on income from OFWs this year. An August report showed a 5.5 percent growth in remittances, but was reported as only 3.6 percent in November.

Guingona said he will seek a Senate inquiry into the conflicting NEDA reports to determine those responsible for tampering with the country’s economic figures.

"The government has a duty to tell the truth, not to fool people with wrong data that portray certified growth," he said.

Meanwhile, Economic Planning Secretary Felipe Medalla said Philippine economic growth would slacken next year amid a political crisis, but assured the public the country would not go into recession.

"I think the worst case scenario for next year is still at least two percent growth for the economy. That’s slower compared to this year, but we will not go into recession," Medalla said in a radio interview.

President Estrada is set to go on trial on charges of bribery and corruption next week. Anti-Estrada groups have been holding regular rallies calling for the President to immediately step down from office.

Finance Secretary Jose Pardo expressed confidence that despite all the noise, the country will end the year with 4 percent growth.

"There could be some effects in the first quarter of next year. We hope the trial will not go beyond February," Pardo said in a separate interview.

Provided the senators reach a verdict by then, the economy is expected to grow at a slower pace of 3.5 percent next year, he added.

Malacañang maintained that the economy continues to do well despite the propaganda being spread by the political opposition.

National Security Adviser Alexander Aguirre reiterated that the problems now facing the country are not because of mismanagement but because of political maneuverings.

"I can say this. The economy under the Estrada administration is not as bad as pictured by the opposition," Aguirre said, noting the economy is doing even better than during the end of terms of Mr. Estrada’s predecessors. – Perseus Echeminada